Uop Fin 370 Week 3

Strategic Initiative Paper

When the first Starbucks store opened in 1971, the idea was simple; to offer a friendly atmosphere for drinking coffee and being with friends. Little did the owner at that time know what a huge corporation the company would turn in to. Starbucks now operates in 55 countries with over 17,000 stores. What began as a simple idea has now turned into many initiatives throughout the years.

A strategic plan is a plan that an organization creates when starting a business or new time period. Strategic plans should be detailed and precise. It should be the “why” that motives the company. Starbuck’s founders made the plan that turned a single store into a multimillion dollar corporation of gourmet coffee, gifts, and treats. Starbucks has successfully created an atmosphere where one can kick back and relax while drinking a fresh cup of coffee.

Starbucks had initially entered into an agreement with Kraft Foods to allow Kraft Foods to distribute their coffee to grocery stores. After many years, Starbucks ended the agreement with Kraft Foods citing breach of contract and they have been in dispute ever since. However, this has led to a new initiative for Starbucks as they have realized the potential of marketing their own products. From this, Starbucks has begun to expand with various acquisitions that will allow it to increase its product base.

In accordance with Starbucks’ strategic initiative of accelerating the growth of our global consumer products business now that we have transitioned from our distribution arrangement with Kraft Foods Global, Inc., Starbucks Corporation issued a press release on June 4, 2012 stating “Starbucks entered into an agreement to acquire Bay Bread, LLC and the La Boulange® bakery brand for $100 million in cash and expects the acquisition to dilute earnings by approximately $0.02 per share in the second half of fiscal 2012, compared to the previously announced earnings targets. Acquisition is next step in...